Want to skip ahead? Jump to:
If you’re planning for growth, running out of space, or dealing with labor challenges, you should take a close look at automation.
The real question isn’t just “Should we automate?”, it’s “What storage model will solve the pain points we’re facing today, and help us stay ahead of the ones we expect are coming?” This isn’t about future-proofing for the sake of it. It’s about making a smart, strategic choice that works now – and keeps working as your needs evolve.
Most warehouse automation doesn’t happen all at once. When a warehouse is ready to begin the automation process, it unfolds in stages. For some, Stage 1 is the right fit, especially if their SKU count is low, their processes are working, and their team is comfortable. Even moving from Stage 1 to Stage 2 is a big leap – it transforms how you store, pick, and think about inventory.
Here’s how the journey typically looks:
STAGE 1
Traditional Warehouse
Manual Picking | Static Shelving
Low investment- High cost of labor + error rates
- Good for low-SKU or startup operations
Low investmentSTAGE 2
Semi-Automated
VLMs, Vertical Carousels, Pick-to-Light
- Items delivered to operator
- Faster, more accurate picking
- Scalable & WMS-ready
STAGE 3
Integrated Systems
ASRS + AMRs or Shuttle Systems
- Mobile robots + smart software
- Real-time coordination
- High investment, high complexity
For most warehouses, Stage 2 hits the sweet spot. It delivers meaningful gains in speed, accuracy, and space efficiency – without requiring the level of infrastructure change that Stage 3 demands. Fully integrated systems with mobile robotics and smart coordination are powerful, but they’re rarely retrofits. They’re typically reserved for brand-new, purpose-built facilities designed to run with minimal human intervention.
Moving from Stage 1 to Stage 2 is more than a step up – it’s a turning point. For many operations, adding a vertical carousel or other semi-automated system is the first real entry point into automated warehouse storage. A vertical carousel or VLM doesn’t just improve how you pick – it changes how your team interacts with inventory, how your space is used, and how your systems connect. It’s often the moment warehouse operations leap forward. But that leap comes with questions – and answering them well is the first step toward getting it right.
How Do You Know If Automated Warehouse Storage is Right for You?
If you’re starting to explore automation – or you’re questioning whether your current setup is still serving you – these seven questions can help you evaluate what’s working, what’s holding you back, and what could unlock the next level of performance.
1. How well are you using your space?
- Static Racking: Requires wide aisles and vertical clearance for forklifts and workers. Overhead space often goes unused.
- Automated Storage: Systems like VLMs build up instead of out and condense storage, reducing your footprint by up to 85%.
Consider automated storage if: You’re maxed out on floor space or expanding isn’t an option.
2. How much time do your workers spend walking?
- Static Racking: Manual picking often means workers spend up to 65% of their time walking to items. According to the U.S. Bureau of Labor Statistics, warehouse labor costs continue to rise, making every inefficiency more expensive.
- Automated Storage: Delivers goods directly to the operator, cutting travel time dramatically.
Consider automated storage if: You’re trying to do more with a limited labor force or struggling with retention.
Talk to Our Automated Storage Experts
3. What’s your picking accuracy rate, and what’s it costing you?
- Static Racking: Paper lists and visual searches lead to mispicks, especially as fatigue sets in.
- Automated Storage: Pick to Light and barcode validation reduce errors and returns.
Consider automated storage if: You’re dealing with a high error rate, frequent returns, or strict quality controls.
4. How organized is your inventory, really?
- Static Racking: Easy for items to get lost, miscounted, or misplaced.
- Automated Storage: Inventory software and slotting tools improve visibility and control.
Consider automated storage if: Your team spends too much time searching, or too little time counting.
5. Are safety and ergonomics a concern?
- Static Racking: Ladders, lifting, bending, and climbing are everyday risks. The National Institute for Occupational Safety and Health (NIOSH) emphasizes minimizing these repetitive motions to reduce workplace injuries in warehouse environments.
- Automated Storage: Goods are presented at waist height, minimizing strain and injury.
Consider automated storage if: You’re tracking injury rates, managing workers’ comp claims, or are committed to a safer workplace.
6. How well does your system scale?
- Static Racking: Simple to install, but scaling can be a challenge. As your product lines expand, your storage footprint often expands with them, leading to more shelving, longer pick paths, and greater complexity.
- Automated Storage: Systems like vertical carousels and VLMs are designed to scale efficiently. They’re modular, adaptable, and can integrate with software to help optimize inventory as you grow.
Consider automated storage if: You’re forecasting SKU growth or planning for operational shifts.
7. What’s your real cost of ownership?
- Static Racking: Low upfront cost, but higher ongoing labor and space expenses.
- Automated Storage: Higher initial investment, but faster ROI through labor and space efficiency.
Consider automated storage if: You’re thinking long-term, and ready to lower total costs by reducing worker travel time, cutting picking errors, and reclaiming valuable floor space. Over the life of the equipment, those savings can add up fast.
Talk to Our Automated Storage Experts
Bonus: What Are You Storing?
Some items don’t play nicely with static racking. Tires. Wire spools. Rolls of carpet. Awkward, heavy, or variable-size inventory can turn traditional shelving into a daily frustration. This is where a vertical carousel or vertical lift module does more than check the usual boxes around space and efficiency – it actually addresses the awkwardness.
If you’re storing inventory that doesn’t fit neatly into bins or boxes, automation can be transformative. See how the service department at Mark Motors Porsche used a Vidir Vertical Lift Module (VLM) to reclaim 85% of their parts storage space while streamlining retrieval. By bringing parts directly to the operator, they eliminated wasted travel time, improved picking accuracy, and increased efficiency. Systems like these are purpose-built to simplify awkward or irregular inventory challenges and deliver meaningful gains in productivity.
Final Thoughts
If your warehouse is bumping up against space, labor, or accuracy limits, it might be time to consider a more strategic approach to automated warehouse storage. Whether you’re just starting to explore your options or already operating with a few systems in place, automated storage solutions can meet you where you are. Asking the right questions is what sets smart decisions apart.
And if the answers point toward automation, you don’t have to go it alone. Our team is here to help you find the right-fit solution – whether that’s a VLM, vertical carousel, another automated storage solution, or simply a smarter way to manage your existing footprint. Want help exploring your answers to these 7 questions? Talk to a Vidir automation specialist.
